UNFAIR CONTRACT TERMS REPORT RELEASED ON THE TELECOMMUNICATIONS SECTOR

Has your business had its standard form contracts reviewed for compliance with the Unfair Contract Terms provision of the Fair Trading Act?

These provisions were introduced into law in March 2015 and a number of businesses have taken a 'wait and see' approach as to how they will be interpreted.

The Commerce Commission has this week released a report of its findings from reviewing the standard form consumer contracts in the New Zealand telecommunications sector.

The unfair contract term provisions are designed to protect consumers from contract terms that create a significant imbalance of rights or obligations between the company and the consumer.

The Commission reports that all seven telco companies have been issued with compliance advice letters from the Commission reminding them of their obligations under the law and cautioning them to ensure their standard form contracts remain compliant with the law.

This is the first of what is likely to be a number of reports to come from the Commission, which has indicated that it has also focussed on contracts in the electricity retail, credit, and gym sectors, and expects to report on these industries later this year.

Don't wait and see any longer

Now is a great time to review your commercial terms of trade - speak with one of our contract law experts.